Litecoin Price Technical Analysis – Monster Trend Line Resistance

Key Highlights

Litecoin price is facing a crucial resistance around the $3.55-60 area where sellers defended the upside more than five times.

There is a major bearish trend line formed on the hourly chart with data feed from HitBTC, which is acting as a barrier for more gains.

The price is now below the 100 simple moving average (H1), which another bearish sign.

Litecoin price continuously failed to trade above the $3.50-60 resistance area, suggesting that sellers are in control and may take it lower moving ahead.

Sell Near $3.55-60?

Litecoin’s price after trading as low as $3.46 managed to recover from losses, and corrected higher. However, there is a monster barrier formed near $3.55-60 for buyers, which is acting as a hurdle and preventing more gains. There is a confluence resistance area formed around the stated level. A bearish trend line on the hourly chart with data feed from HitBTC and the 38.2% Fib retracement level of the last drop from the $3.79 high to $3.46 low are positioned around $3.55-60.

Moreover, the 100 simple moving average (H1) is also just below the highlighted trendline and resistance area. The price has just moved below it, which is a sign that sellers are in control and may take the price further lower. On the downside, the most significant support is near the last swing low of $3.46 where buyers may take a stand. If buyers manage to take the price higher from the current levels, then a break above the trendline and resistance area could take the price towards the 50% Fib retracement level of the last drop from the $3.79 high to $3.46 low. However, it won’t be an easy task for buyers to break the $3.55-60 resistance area.

Looking at the lower time frame chart, there are a few positive signs. There is a bullish trend line formed on the 30-min chart via the data feed from Bitfinex, which is currently acting as a pivot area and pushing the price higher. The price is currently testing the 50% Fib retracement level of the last wave from the $3.37 low to $3.52 low. There is a difference if levels compare to data feeds from Bitfinex and HitBTC.

If the price trades closer to the highlighted trendline and support area (30M chart), there is a chance of it gaining traction. As long as the price is above it, there is hope that buyers may attempt to take the price higher. However, there is a bearish sign, as the price has moved below the 100 simple moving average (30-min chart via the data feed from Bitfinex).

Overall, the price is trading near crucial levels, both in terms of support and resistance. A break on either side could ignite the next move in the short term.

Looking at the indicators:

Hourly MACD – The MACD is in the bearish zone, suggesting more losses moving ahead.

Hourly RSI – The RSI is making an attempt to recover from the oversold level, but may struggle near the 50 area.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
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